Airlines to Abandon Dozens of Regional Cities

Mish

On Friday, the FAA granted airlines the right to halt service to regional cities

Cancelled, Perhaps for Good

Dozens of cities are impacted by Friday's FAA decision to allow Airlines to Stop Regional Service.

American Flights Cancelled

  • Worcester, Massachusetts
  • Aspen Colorado
  • Eagle, Colorado

Delta Flights Cancelled 

  • Erie, Pennsylvania
  • Flint, Michigan
  • Lincoln, Nebraska
  • Williston, North Dakota

United Flights Cancelled

  • Fairbanks, Alaska
  • Kalamazoo, Michigan
  • Myrtle Beach, South Carolina

60 Cities Under Review

Those are some examples. The airlines have targeted 60 cities. 

An objection period lasts through next Thursday when the transportation department will make a final ruling.

Should Airlines Cancel Flights?

Yes. Airlines should decide, not the government. 

But under the "Cares Act" airlines had to keep a minimum number of flights to locations that it had served before the pandemic hit.

However, the "Cares Act" allowed for exceptions. 

Expect about 60 exceptions. 

Cities will not completely be without nearby service. For example, Worcester, Mass., is a little over an hour’s drive from Boston Logan. 

Regional Impact

Customers will be inconvenienced a bit, having to drive an additional hour or two (we will find out the details shortly).

But the regional businesses, including car rental companies, nearby restaurants, nearby hotels, and all the people working at such places will take a hit.

No V-Shaped Recovery

Factor in local disruptions, with a general overall change in attitudes towards leverage, eating out, business travel, and working at home.

The combination is nasty. The recovery will be shallow and take years.

Global COVID-19 Risk Ranges Up to $82 Trillion

For further discussion, please see Global COVID-19 Risk Ranges Up to $82 Trillion

Mish

Comments (22)
No. 1-10
tokidoki
tokidoki

Car rental companies? Hertz just filed for bankruptcy protection.

Anda
Anda

O/T again...

In Spain protests are warming up along with the weather

The gov is saying there will be 10 days of mourning, to book holidays for summer, 600 eu fine for not wearing mask when within 2 metres etc. those are just from the above today.

Seems UK is giving Spain low priority and focusing on Greece and Portugal as travel corridors.

Mish
Mish

Editor

I have Hertz up on my screen now. Aware of it and knew it was coming.

Sechel
Sechel

Should Airlines Cancel Flights?

Yes. Airlines should decide, not the government.

Then don't take the money and the subsidies!! You do realize the Federal government subsidizes some airline routes? The Federal government is very much involved already.

Let's not forget who picks up the tabs for constructing and maintaining airports, and the flight controllers is an ad on to tickets and a cost the airlines don't bear

Isn't this always the case, businesses want the benefits of government regulation(subsidies etc but none of the obligations and monitoring)

Herkie
Herkie

The town I just moved from is 270 miles from Portland, the nearest big city. It is a regional city and more than a 4 hour drive to the PDX airport. Even without passengers a lot of planes fly contracted cargo. Federal like mail as well as other. They cannot allow that to end. For one thing between Portland and Seattle to the North and SF to the south there is a stretch of some 600+ miles of airspace without a runway long enough to accomodate a plane in distress such as mechanical failure or a passenger with a life threatening health issue. The runways can accomodate any plane flown today, and were expanded extra long just for that reason. But during the CV pandemic I think many flights must have been empty, or with just a couple people flying.

abend237-04
abend237-04

There'll likely be more...

Six000mileyear
Six000mileyear

People in Worcester, MA can drive to Bradley International in Windsor Locks CT. The drive is a few more miles away than Logan, but there is far less traffic and parking rate are a lot less.

Sechel
Sechel

It was idiotic to give money to the airlines and mandate they retain flight crews. Airlines won't need the pre-covid-19 capacity for years. Airlines need to shrink and reduce capacity. We should have simply provided more generous unemployment benefits and encouraged the airlines to restructure, shed routes, ground airplanes and adjust to the new normal. Forcing airlines to have more employees than it needs just makes them bloated and not-competitve. That being said we can't forget the gross incompetence of airlines buying back stock to the tune of over 80% of net cash flow but that's just more reason why the gov't shouldn't be bailing them out when bankruptcy reorganization is a viable solution. All that happens is management gets fired and hedge funds get wipe out. The company survives in any solution short of liquidation.

ReadyKilowatt
ReadyKilowatt

Aspen and Eagle (Vail) flights are heavily subsidized by Pitkin and Eagle counties. They bring in the skiers while not having much impact on the infrastructure. When skiing (and everything else in town) stopped so did the flights. Aspen went from about 20 flights a day to 3. For a time KASE had direct flights from Chicago, Houston, San Francisco and LAX (in addition to Denver and Salt Lake City which is what one would expect). The FAA is requiring Pitkin county to enlarge the runway to make it possible to land bigger aircraft, but Woody Creek (which sits on the glide path) is fighting it tooth and nail, and they've got the cash to keep it in the courts for decades. It will be interesting to see how all this plays out in the post-COVID world, but that's another topic.

Now American and United are running minimal flights. There's a daily milk-run between Denver, the mountain towns and SLC. There's a flight or two to DIA. That's it. It will be interesting to see what the schedule looks like next week now that they've got permission from the FAA. I wonder if they'll give any money back to the counties?

PontingJack
PontingJack

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